Statement of Projected Cash Flow
This example would certainly become more complex if the effects of taxes, depreciation, and working capital were included. Although the execution becomes more difficult, a rough equivalence between operating losses (gains) and debt-service gains (losses) can still be achieved as long as all cash flows are accounted for. The inclusion of other foreign operations just requires the aggregation of the cash-flow effects over all affiliates because the MNC’s total exchange risk is based on the sum of the changes of the profit contributions of each individual subsidiary.